Philippines registers 7.8% GDP growth in first quarter

The Philippine economy continued to register robust growth with the first quarter Gross Domestic Product (GDP) increasing at 7.8 percent, making it the fastest growing economy in Asia in the first quarter.

The National Statistical Coordination Board (NSCB) in a briefing yesterday attributed the growth to strong performance of the manufacturing and construction sectors coupled by continued increase in public spending and heightened consumer spending in the country.

Based on the NSCB report, the industry sector which includes manufacturing, construction and mining registered a growth of 10.9 percent, a big increase compared to the 5.3 percent growth in the same period last year.

biggest expansion

The construction industry registered the biggest expansion with 32.5 percent growth for the first quarter compared to only 29.9 percent in the last quarter of 2012. The manufacturing industry grew by 9.7 percent while mining and quarrying industry expanded by 17 percent, which was a huge jump from only 1.7 and 2.8 percent in the same period last year.

Because of the robust growth, the Philippines is now the fastest growing economy in the Asian region growing faster than our neighbors like China with only 7.7 percent, Indonesia with 6 percent, Thailand with 5.3 percent, and Vietnam with 4.9 percent.

Foreign firms like Bloomberg had projected the first quarter GDP at only 6.01 percent while Reuters placed projection at only 6 percent.

more Investments

Philip Tan, Mandaue Chamber of Commerce and Industry president, said the positive growth only confirms that the country is on the right track.

Tan said that the economy’s robust growth should encourage more businessmen and government to continue pouring in more investments that would sustain the growth and generate more jobs.

“We are currently at the height of all positive developments starting from the investment grades and increased government competitiveness index. This is just an indication that we are on the right track. Now to sustain this or even grow faster, we will need more investments. Now is the best time for businesses to expand,” Tan said.

Tan called for more enabling policies by the government to maintain the growth and to sustain the confidence of investors in the government.

Tan, however, warned the government and businessmen of being complacent.

He said it’s not the time to rest but instead to be more aggressive in riding the positive wave for all businessmen and government.

Ramero Espina, Primary Homes vice president for sales and marketing, said that the construction industry would continue to grow fueled by the robust expansion in the real estate industry which includes the residential, office, commercial, and even infrastructure developments not only in Cebu but all over the country.

CEBU REAL ESTATE

Primary Homes recently launched their 23rd residential development in Talisay City Cebu called South Glendale. The property company has two more projects to launch within the year, which means more construction activities in Cebu.

Last May 29, Cebu Centrale, the 19-story building at the Cebu IT Park also broke ground, signs of the booming construction industry in Cebu.

Fred Escalona, Philexport Cebu executive director, said he was confident of sustaining the economic growth.

“The 7.8 percent growth rate in GDP is over our expectations. Foreign direct investments and capital have fueled both our stock market surge as well as long term funds invested directly in companies. There is a substantial amount of venture capital in the IT sector. The services sector is also contributing to the pace of growth. This trend can be sustained provided there are no negative developments that will sideline the positive trend such as peace and order and corruption issues,” Escalona said.

Prudencio Gesta, Cebu Chamber of Commerce and Industry immediate past president, said that the GDP growth was expected.

“We have been expecting sustained favorable GDP growth of the Philippines due to stable income sources basically from OFWs (overseas Filipino workers), BPOs (business process outsourcing), tourism coupled with more government spending in infrastructure or services and private investment in real estate development and construction that fuel very strong domestic spending or consumption,” Gesta said./Reporter Aileen Garcia-Yap and Inquirer